Message #8 From:
NewsBot Date: March 29, 2007 06:00:00 AM
IAIC News Information Analysis Inc. Announces Fourth Quarter Results
FAIRFAX, Va.--(BUSINESS WIRE)--Information Analysis Inc. (OTCBB:IAIC) today reported results for the fourth quarter and full year ended December 31, 2006. Revenues were $2,002,000, compared to $2,950,000 reported in the fourth quarter 2005. The Information Technology services company reported net income of $106,000 or $0.01 per share basic and diluted, compared to net income of $261,000 or $0.02 per share basic and diluted in the comparable period in 2005.
For the year ended December 31, 2006, IAI posted revenue of $9,459,000 and net income of $502,000, or $0.05 per share basic and $0.04 diluted. The Company reported revenue of $10,772,000 and net income of $732,000 or $0.07 per share basic and diluted for the year ended December 31, 2005.
“We experienced a downturn of revenues in 2006 as a result of delays in the government ordering process,” said Sandor Rosenberg, Chairman and Chief Executive Officer of IAI. “During the past few years we were able to reach financial stability, which has allowed us to plan for future growth. We have been working diligently on building a larger pipeline. This is expected to add additional revenue during 2007 and future years. We continue to see more opportunities through our Adobe relationship that should enhance our future business.
“We are continuing too pursue merger/acquisition opportunities with other organizations.”
About Information Analysis Incorporated
Information Analysis Incorporated (www.infoa.com), headquartered in Fairfax, Virginia, is an information technology services company. The Company is a web solution provider and software conversion specialist, modernizing legacy systems and extending their reach to the internet world.
This release may contain forward-looking statements regarding the Company's business, customer prospects, or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed in the Company's 10-KSB for the fiscal year ended December 31, 2006, and in other filings with the Securities and Exchange Commission.
Information Analysis Incorporated
Condensed Statements of Operations
Three months ended
December 31,
(in thousands, except per share data)
2006
2005
Sales:
Professional fees
$
1,809
$
2,187
Software sales
193
763
Total sales
2,002
2,950
Cost of goods sold and services provided:
Cost of professional fees
1,322
1,689
Cost of software sales
143
534
Total cost of sales
1,465
2,223
Gross profit
537
727
Operating expenses:
Selling, general and administrative
(421)
(462)
Income from operations
116
265
Other expenses, net
(9)
1
Income before provision for income taxes
107
266
Provision for income taxes
1
5
Net income
$
106
$
261
Earnings per Common Share: Basic and Diluted
Basic net income
$
0.01
$
0.02
Diluted net income
$
0.01
$
0.02
Shares used in calculating earnings per share:
Basic
11,151,394
10,620,570
Diluted
11,366,653
11,388,849
Twelve months ended December 31,
(in thousands, except per share data)
2006
2005
Sales:
Professional fees
$
8,484
$
9,045
Software sales
975
1,727
Total revenue
9,459
10,772
Cost of goods sold and services provided:
Cost of professional fees
6,402
6,960
Cost of software sales
621
1,348
Total cost of sales
7,023
8,308
Gross profit
2,436
2,464
Operating expenses:
Selling, general and administrative
(1,929)
(1,715)
Income from operations
507
749
Other expenses, net
(4)
(12)
Income before provision for income taxes
503
737
Provision for income taxes
1
5
Net income
$
502
$
732
Earnings per Common Share: Basic and Diluted
Basic net income
$
0.05
$
0.07
Diluted net income
$
0.04
$
0.07
Shares used in calculating earnings per share:
Basic
11,018,317
10,376,247
Diluted
11,342,072
10,968,026
Information Analysis Incorporated
Balance Sheets
(in thousands)
As of
December 31, 2006
As of
December 31, 2005
ASSETS
Current assets:
Cash and cash equivalents
$
808
$
452
Accounts receivable, net
1,758
1,994
Prepaid expenses
382
183
Note receivable
116
85
Other receivables
6
15
Other assets
4
--
Total current assets
3,074
2,729
Fixed assets, net
67
57
Other assets
9
9
Total assets
$
3,150
$
2,795
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
644
$
1,175
Deferred revenue
513
214
Accrued payroll and related liabilities
265
321
Other accrued liabilities
53
125
Income taxes payable
--
4
Revolving line of credit
--
--
Total current liabilities
1,475
1,839
Total liabilities
1,475
1,839
Common stock, par value $0.01, 30,000,000 shares authorized; 12,839,376 shares issued, 11,196,760 outstanding at December 31, 2006, and 12,127,626 shares issued, 10,623,015 outstanding at December 31, 2005,
128
121
Additional paid in capital
14,486
14,212
Accumulated deficit
(12,009)
(12,511)
Other comprehensive income
--
(12)
Less treasury stock; 1,642,616 and 1,504,611 shares at cost at December 31, 2006 and 2005, respectively
